State how each of the following affects the adi curve and


State how each of the following affects the ADI curve, and EXPLAIN.

a. An increase in government purchases.

b. A cut in taxes.

c. A decline in planned investment spending by firms.

d. A decision by the bank of Canada to lower the real interest rate at each level of inflation.

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Business Economics: State how each of the following affects the adi curve and
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